In what will represent a financial milestone with electrifying possibilities in India, Indian electric scooter manufacturer, Ola Electric is reportedly preparing to embark on a transformative journey towards an initial public offering (IPO) by the end of 2023 and has enlisted Goldman Sachs and Kotak to manage the share sale, per a Reuters report.
By tapping into the capital markets, the electric two-wheeler startup aims to fuel its ambitious vision of revolutionizing transportation with a clean, green, and futuristic approach. The IPO will infuse Ola Electric with the necessary financial impetus to scale its operations, bolster its market presence, and venture into new frontiers of the electric mobility ecosystem.
The IPO decision comes after the company achieved its highest sales to date in April, selling approximately 30,000 electric scooters, solidifying its position as the market leader in the EV scooter space, sources said.
While the exact amount to be raised and the targeted valuation is yet to be determined, Ola Electric aims for a valuation higher than the $5 billion it achieved in its last fundraising round in the IPO. If at least 10% of shares are sold at that valuation, it could become India's largest IPO of the year, despite current market conditions.
Filing the necessary documents, marketing to investors, and completing the listing by year-end may pose challenges. However, Ola remains determined to meet the proposed timeline.
Ola recognized as India’s most valuable electric two-wheeler startup plans to expand beyond scooters, introducing electric motorcycles and cars. The company also aims to increase investments in cell manufacturing to enhance localization levels, further driving its growth in the EV market.